# COMAR Title 09 — Maryland Department of Labor

## Subtitle 33 — Job Service

### Chapter 01 — Job Service

**Authority:** Labor and Employment Article, §§8-303 and 8-305, Annotated Code of Maryland

**Administrative History:** Effective date: February 4, 1976 (3:3 Md. R. 149)

**Administrative History:** (Transferred from Department of Human Services to Department of Employment and Training, effective October 1, 1983; recodified from COMAR 07.05.02 to

**Administrative History:** 24.03.01)

**Administrative History:** Regulations .01—.04, Job Service Bank System, repealed and Regulations .01—.09, Job Service, adopted effective August 3, 1992 (19:15 Md. R. 1393)

**Administrative History:** Regulation .06B amended effective December 21, 1992 (19:25 Md. R. 2208)

**Administrative History:** Chapter recodified from COMAR 24.03.01 to COMAR 09.33.01, May 1996

#### Regulation .01 Purpose.

*COMAR 09.33.01.01*

These regulations set forth the policies and procedures for employers and applicants seeking to use the Maryland Job Service.

#### Regulation .02 Objective.

*COMAR 09.33.01.02*

Job Service shall operate a labor exchange system that has the capacity to:

A. Assist job seekers in finding employment;

B. Assist employers in filling jobs;

C. Facilitate the match between job seekers and employers;

D. Participate in a system for clearing labor among the states, including the use of standardized classification systems issued by the Secretary of the U.S. Department of Labor;

E. Meet the work test requirements of the Unemployment Insurance Law; and

F. Meet other requirements arising from changes in legislation or regulations.

#### Regulation .03 Definitions.

*COMAR 09.33.01.03*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Applicant” means an individual who applies for Job Service services.

  (2) “Complaint” means an allegation made or referred to Job Service of a violation of the federal Job Service regulations or other federal, State, or local employment-related law.

  (3) “Department” means the Maryland Department of Labor.

  (4) “Employer” means a person or entity that:

    (a) Currently has a location within the United States to which U.S. workers and alien workers with valid work permits may be referred for employment;

    (b) Proposes to employ a worker; and

    (c) Has an employer relationship with respect to employees as indicated by the fact that it hires, pays, fires, supervises, and otherwise controls the work of the employee.

  (5) “Job Service” means the Maryland Job Service, a program of the Office of Employment Services within the Department.

  (6) “Public employment office” means an office of the Department maintained for the purpose of providing placement and other services of the public employment service system.

  (7) “Secretary” means the Secretary of Labor or the Secretary's designee.

#### Regulation .04 Compliance with Law.

*COMAR 09.33.01.04*

The Job Service shall be administered in accordance with the Wagner-Peyser Act, 29 U.S.C. §49, regulations adopted by the United States Employment Service, and the Labor and Employment Article, §8-803, Annotated Code of Maryland.

#### Regulation .05 Job Placement.

*COMAR 09.33.01.05*

A. Job Order.

  (1) An employer may place a job order with Job Service. A job order is a single request for referral of one or more applicants to fill one or more job openings in a single occupational classification. The job order shall provide sufficient information to describe the job.

  (2) Pursuant to 20 CFR §652.8(j) and COMAR 01.01.1988.05, Job Service shall fill all job orders on a nondiscriminatory basis, and shall decline any job order carrying a specification or limitation as to political or religious opinion or affiliation, marital status, race, color, creed, or national origin, or as to sex or age, unless sex or age constitutes a bona fide occupational qualification, or as to the physical or mental disability of a qualified individual with a disability.

  (3) Pursuant to 20 CFR §652.8(j), Job Service shall accept and attempt to accommodate employers' valid affirmative action requests in job orders by referring a significant number of qualified applicants from the target groups.

B. Applicant. An individual may become a Job Service applicant by applying to Job Service.

C. Job Referral.

  (1) Job Service staff shall review the applicant's completed application to assess the applicant's qualifications.

  (2) When appropriate, Job Service shall attempt to match the applicant's qualification with the specifications set forth in a job order or otherwise attempt to develop a job opportunity for the applicant.

  (3) Job Service may refer one or more applicants to an employer in response to a job order.

  (4) If an applicant fails to appear for three scheduled appointments with employers within a 12-month period, Job Service may refuse to refer the applicant for 1 year following the third missed appointment.

  (5) Applicants exhibiting disruptive behavior at a public employment office on a given day may not be referred to an employer that day.

D. No Guarantees. Neither the United States Department of Labor nor the Maryland Department of Labor guarantees the truthfulness or accuracy of information obtained from employers or applicants.

#### Regulation .06 Determinations of Eligibility for Unemployment Insurance.

*COMAR 09.33.01.06*

A. Suitable Employment.

  (1) The work test necessary to determine whether suitable work is available to an unemployment insurance claimant shall be performed by either Job Service staff, or another employee of the Department designated by the manager of the public employment office serving the claimant.

  (2) The following factors shall be considered in making the determination if suitable work is available to a claimant:

    (a) Claimant's skills;

    (b) Claimant's training;

    (c) Claimant's experience;

    (d) Claimant's capabilities;

    (e) Claimant's prior earnings;

    (f) Claimant's length of unemployment;

    (g) Claimant's prospects for securing customary occupation in the local area;

    (h) The distance of available work from claimant's residence;

    (i) Wages, hours, or other conditions of the work offered are substantially less favorable than those prevailing for similar work in the locality;

    (j) The position offered is vacant due directly to a strike, lockout, or other labor dispute;

    (k) As a condition of being employed, the individual will be required to forfeit rights secured by the National Labor Relations Act; and

    (l) Any other factors that the Secretary determines are relevant.

B. Approved Training.

  (1) Job Service shall determine whether an employment-related training program is approved for the purposes of granting a work search waiver to unemployment insurance claimants.

  (2) Job Service shall consider the following factors in determining whether to approve a training program:

    (a) Whether the prospects for the claimant's employment in the occupation for which the claimant has existing training and experience are minimal;

    (b) Whether the training program will prepare the claimant for employment in a career in which there are job opportunities;

    (c) Whether participating in the training program will effectively prevent the claimant from conducting work search or employment activities during the claimant's normal work hours;

    (d) Whether the claimant could reasonably be required to attend a similar training program at times that would not conflict with the claimant's normal work hours;

    (e) Whether the claimant has been accepted into the training program; and

    (f) Any other factors that the Secretary determines are relevant.

  (3) A work search exemption may not be granted for:

    (a) A self-study program that does not require on-premises attendance;

    (b) A program not accredited by or approved by the appropriate authority, unless the program lasts 13 weeks or less and the training is in a field for which there are jobs in the local labor market; or

    (c) Education leading to a college or post-college degree, unless the claimant will attain the degree in 26 weeks or less and the training is in a field for which there are jobs in the local labor market.

  (4) A claimant who is granted a work search waiver due to participation in approved training shall submit each week attendance and progress reports on Department forms.

  (5) A claimant who fails to attend training or to submit the required forms shall have the work search exemption withdrawn.

#### Regulation .07 Job Service Fees.

*COMAR 09.33.01.07*

A. Job Service may not charge a referral fee to individuals who seek employment.

B. Job Service may not charge a fee to employers for placing job orders.

C. Job Service may charge a fee to employers requesting special services such as interviewing, screening, or training applicants at a location other than a public employment office.

#### Regulation .08 Job Service Complaint System.

*COMAR 09.33.01.08*

A. Complaints. Both of the following types of complaints shall be made and processed in accordance with the Job Service Complaint System described in 20 CFR §§658.400—658.418:

  (1) Complaints that are made against an employer about the specific job to which the applicant was referred by Job Service and that allege a violation of employment-related law or of the terms and conditions of the job order; and

  (2) Complaints about Job Service actions or omissions.

B. Hearings. The Office of Administrative Hearings shall hold the Job Service Complaint System hearings as required in 29 CFR §658.417, using the procedures set forth in COMAR Title 28.

C. Complaints alleging discrimination shall be filed and processed according to the procedures in 29 CFR 31 and 32.

#### Regulation .09 Waiver.

*COMAR 09.33.01.09*

The Secretary may waive or vary particular provisions of these regulations to the extent that the waiver is not inconsistent with relevant State or federal law.

### Chapter 02 — Economic Stabilization

**Authority:** Labor and Employment Article, §§11-301—11-306, State Government Article, §10-206, Annotated Code of Maryland

**Administrative History:** Effective date: May 19, 1986 (13:10 Md. R. 1158)

**Administrative History:** Chapter recodified from COMAR 24.03.03 to COMAR 24.03.02

**Administrative History:** Chapter recodified from COMAR 24.03.02 to COMAR 09.33.02, May 1996

**Administrative History:** Chapter revised effective October 13, 2025 (52:20 Md. R. 1000)

#### Regulation .01 Purpose.

*COMAR 09.33.02.01*

The Economic Stabilization Act regulations provide notice requirements and guidelines for employers faced with a major reduction in the workforce.

#### Regulation .02 Exemptions.

*COMAR 09.33.02.02*

This chapter does not apply to a reduction in operations as described in Labor and Employment Article, §11-302, Annotated Code of Maryland.

#### Regulation .03 Definitions.

*COMAR 09.33.02.03*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Bulk claims” means deploying Maryland Division of Unemployment Insurance to the employer’s and employees’ place of business to assist the employees in filing unemployment claims through the unemployment online claim filing system for incidents where 25 or more workers are laid off at one time.

  (2) “Employee” has the meaning stated in Labor and Employment Article, §11-301(b), Annotated Code of Maryland.

  (3) Employer.

    (a) “Employer” means a person, corporation, or other entity that:

      (i) Operates an industrial, commercial, or business enterprise;

      (ii) Employs at least 50 employees;

      (iii) Has been operating for at least 1 year; and

      (iv) Is operating in the State of Maryland.

    (b) “Employer” does not mean the State or its political subdivisions.

  (4) “Permanent” has the meaning stated in Labor and Employment Article, §11-301(d), Annotated Code of Maryland.

  (5) “Reduction in operations” has the meaning stated in Labor and Employment Article, §11-301(e), Annotated Code of Maryland.

  (6) “Remote worker” refers to an employee, or multiple employees operating under the same Employer Identification Number, with a permanent work arrangement under which they are scheduled to perform duties, responsibilities, and other authorized activities of such employee’s position at an approved worksite other than the assigned workplace.

  (7) “Secretary” means the Secretary of the Maryland Department of Labor.

  (8) “Telework” refers to a worksite flexibility agreement for the purpose of allowing an employee or employees to perform their duties, responsibilities, and other authorized activities of such employee’s position from an approved alternative worksite other than the employee’s official duty station.

  (9) Workplace.

    (a) “Workplace” has the meaning stated in Labor and Employment Article, §11-301(f), Annotated Code of Maryland.

    (b) “Workplace” includes the official duty station or agency worksite for telework employees within the State of Maryland.

    (c) “Workplace” includes the entire State of Maryland, which is considered a single workplace for any remote worker or collection of remote workers.

#### Regulation .04 Notice.

*COMAR 09.33.02.04*

At least 60 calendar days prior to initiating a reduction in operations, an employer shall provide written notice as required by Labor and Employment Article, §11-305, Annotated Code of Maryland.

#### Regulation .05 Guidelines for Employers Anticipating a Permanent Reduction in Operations.

*COMAR 09.33.02.05*

A. Employers facing a reduction in shall use their best efforts to meet with employee representatives regarding concessions or alternatives, or both, in an effort to prevent closure and the reduction in operations.

B. Termination Phase-In.

  (1) Meet with employee representatives regarding concessions or alternatives, or both, to closure in order to save the place and save jobs;

  (2) If collective bargaining agreements are in force, then the employer shall implement the provisions of each agreement as the agreement pertains to termination and seniority.

C. Post Termination Benefits.

  (1) Employers should consider continuing non-work-related benefits for as long as feasible following termination.

  (2) Employers should consider offering laid-off employees the following benefits:

    (a) Health care coverage or the option of continuing, at the employee's own expense, the employee's current health care coverage:

      (i) For at least 6 months following termination; or

      (ii) Until other employment is secured;

    (b) Participation rights in employee credit unions; and

    (c) Other special company benefits.

D. Special Termination Benefits.

  (1) Employers should consider providing the following special benefits:

    (a) Retraining allowances, which:

      (i) Could range from $1,000 to $1,800; and

      (ii) Can be utilized by any employee who both enrolls and completes a retraining program or career-related educational program;

    (b) A severance pay package tied to the employee's wage level or length of employment, or both;

    (c) Job search assistance or job clubs which include instruction on how to:

      (i) Market employment skills;

      (ii) Complete resumes/applications;

      (iii) Interview;

      (iv) Look for work; and

      (v) Utilize labor market information.

  (2) Employers may implement on-site displaced worker centers to provide a central place for the dissemination of all termination services and information.

#### Regulation .06 Assistance from the Maryland Department of Labor.

*COMAR 09.33.02.06*

A. The Maryland Department of Labor shall make the Rapid Response Program available to employers consisting of:

  (1) On-site unemployment insurance bulk claims registration;

  (2) Registration of federal trade readjustment services;

  (3) Labor market and retraining information;

  (4) Job placement services;

  (5) Job seeking and finding information; and

  (6) Referral to retraining opportunities.

B. The Maryland Department of Labor shall assist employers in planning for and implementing a program to provide reemployment services for displaced or soon to be displaced workers by attempting to provide:

  (1) Assistance with planning for reemployment services to the work force;

  (2) Assistance with planning for and implementing an on-site displaced worker assistance center; and

  (3) Financial resources, as available, to assist with a wide range of employment and training services.

#### Regulation .07 Mechanisms to Start Assistance Programs from the Maryland Department of Labor.

*COMAR 09.33.02.07*

A. .Employers may contact the Assistant Secretary for the Division of Workforce Development and Adult Learning.

B. The Secretary shall:

  (1) Monitor layoffs to identify employers who are likely to experience a reduction in operations;

  (2) Identify employers likely to experience a reduction in operations; and

  (3) Contact all employers in the State who appear to be faced with or planning a permanent reduction in operations. This contact shall be:

    (a) ; Considered confidential, commercial, and financial information;

    (b) Directed to the chief executive of the business; and

    (c) For the purpose of offering:

      (i) Planning assistance; and

      (ii) Assistance in providing services, if needed.

C. If the employer approves, the Maryland Department of Labor may contact other partner organizations to provide whatever assistance and resources are deemed appropriate.

#### Regulation .08 Order Compelling Compliance.

*COMAR 09.33.02.08*

A. Issuance.

  (1) If, after investigation, the Secretary, or the Secretary’s designee, believes an employer has violated Labor and Employment Article, §11-305, Annotated Code of Maryland, or a regulation adopted pursuant to this Act, the Secretary shall, with reasonable promptness, issue an order compelling compliance.

  (2) An order shall:

    (a) Be in writing;

    (b) Describe with specificity the nature of the alleged violation;

    (c) State the penalty, if any, that the Secretary proposes to assess under Labor and Employment Article, §11-306, Annotated Code of Maryland; and

    (d) Inform a party of the requirements of §B(2) of this regulation.

B. Enforcement.

  (1) A party to whom an order is issued may file with the Secretary, or the Secretary’s designee, a written notice of contest to the proposed penalty.

  (2) Notice shall be:

    (a) In writing; and

    (b) Postmarked within 15 business days of the date of the order.

  (3) If a party does not file proper notice of contest, any proposed penalty becomes final upon the expiration of 15 business days following the party's receipt of the order.

  (4) If a party files a notice of contest in accordance with this regulation, the Secretary, or the Secretary’s designee, shall delegate the hearing to the Office of Administrative Hearings.

  (5) A contested hearing shall be governed by COMAR 09.01.03.

#### Regulation .09 Penalties and Scope.

*COMAR 09.33.02.09*

A. This regulation applies to the assessment of civil penalties by the Secretary, or the Secretary’s designee, under Labor and Employment Article, §11-306, Annotated Code of Maryland, in all cases arising from a violation of Labor and Employment Article, §11-305, Annotated Code of Maryland.

B. In assessing a penalty for a violation of the law, a regulation, or an order, the Secretary or the Secretary’s designee shall consider the factors listed in Labor and Employment Article, §11-306(b), Annotated Code of Maryland.

### Chapter 03 — Hospital Employees Retraining Program

**Authority:** Business Regulation Article, §§2-102 and 2-105;Health-General Article, §§19-223, 19-325, and 19-326.1;Labor and Employment Article, §11-201; Annotated Code of Maryland

**Administrative History:** Effective date:

**Administrative History:** Regulations .01—.06 adopted as an emergency provision effective July 18,

**Administrative History:** 1986 (13:16 Md. R. 1824); emergency status expired October 31, 1986

**Administrative History:** Regulations .01—.06 adopted effective September 7, 1987 (14:18 Md. R. 1968)

**Administrative History:** Chapter recodified from COMAR 24.03.04 to COMAR 24.03.03

**Administrative History:** Regulations .03, .05, and .06 amended effective August 3, 1992 (19:15 Md. R. 1393)

**Administrative History:** Chapter recodified from COMAR 24.03.03 to COMAR 09.33.03, May 1996

**Administrative History:** Regulation .01 amended effective December 29, 1997 (24:26 Md. R. 1757); July 25, 2022 (49:15 Md. R. 738)

**Administrative History:** Regulation .02 amended effective December 29, 1997 (24:26 Md. R. 1757)

**Administrative History:** Regulation .02B amended effective July 25, 2022 (49:15 Md. R. 738)

**Administrative History:** Regulation .03 amended effective December 29, 1997 (24:26 Md. R. 1757); July 25, 2022 (49:15 Md. R. 738)

**Administrative History:** Regulation .04 amended effective December 29, 1997 (24:26 Md. R. 1757); July 25, 2022 (49:15 Md. R. 738)

**Administrative History:** Regulation .05B amended effective July 25, 2022 (49:15 Md. R. 738)

**Administrative History:** Regulation .06 amended effective December 29, 1997 (24:26 Md. R. 1757)

**Administrative History:** Regulation .06B, C amended effective July 25, 2022 (49:15 Md. R. 738)

**Administrative History:** Regulation .06D adopted effective July 25, 2022 (49:15 Md. R. 738)

#### Regulation .01 Purpose.

*COMAR 09.33.03.01*

The purpose of these regulations is to establish a program to provide employment and retraining assistance to displaced hospital employees who are unemployed or may become unemployed due to a hospital's change in status as more particularly described in Health-General Article, Title 19, Subtitle 3, Annotated Code of Maryland.

#### Regulation .02 Definitions.

*COMAR 09.33.03.02*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Acquisition” has the meaning stated in Labor and Employment Article, §11-201(a)(2), Annotated Code of Maryland.

  (2) “Closure” has the meaning stated in Labor and Employment Article, §11-201(a)(3), Annotated Code of Maryland.

  (3) “Commission” means the Health Services Cost Review Commission.

  (4) “Division” means the Division of Workforce Development and Adult Learning of the Maryland Department of Labor.

  (5) “Downsize” has the meaning stated in Labor and Employment Article, §11-201(a)(5), Annotated Code of Maryland.

  (6) “Full delicensure” has the meaning stated in Health-General Article, §19-326.1(a)(6), Annotated Code of Maryland.

  (7) “Fund” has the meaning stated in Labor and Employment Article, §11-201(g), Annotated Code of Maryland.

  (8) “Hospital” means a health care facility as defined in Health-General Article, §19-301(f), Annotated Code of Maryland, whose rates have been approved by the Commission.

  (9) “May become unemployed” means the employee is at risk of displacement during the next 90 days due to hospital acquisition, closure, partial closure, merger, delicensure, partial delicensure, or downsizing, and the:

    (a) Employee has received written notice from the hospital that the employee is in a position or job classification that may be affected by acquisition, closure, partial closure, merger, delicensure, partial delicensure, or downsizing;

    (b) Hospital has notified the Maryland Department of Labor or the Commission, pursuant to Regulation .03B(1) of this chapter, that the employee will be laid off due to acquisition, closure, partial closure, merger, delicensure, partial delicensure, or downsizing; or

    (c) Hospital has notified the Maryland Department of Labor, pursuant to Regulation .03B(2) of this chapter, that the employee will be laid off.

  (10) “Merger” has the meaning stated in Labor and Employment Article, §11-201(a)(6), Annotated Code of Maryland.

  (11) “Partial closure” has the meaning stated in Labor and Employment Article, §11-201(a)(7), Annotated Code of Maryland.

  (12) “Partial delicensure” has the meaning stated in Health-General Article, §19-326.1(a)(9), Annotated Code of Maryland.

  (13) “Physician” has the meaning stated in Health-General Article, §1-101(j), Annotated Code of Maryland.

  (14) “Physician assistant” has the meaning stated in Health Occupations Article, §15-101(o), Annotated Code of Maryland.

  (15) “Program” means the program established for the retraining of and job search assistance for eligible hospital employees who may become unemployed.

#### Regulation .03 Eligibility for Services.

*COMAR 09.33.03.03*

A. An individual may be eligible for service through the Hospital Employees Retraining Program if the individual:

  (1) Is included in a hospital's listing of employees scheduled for layoff as required by §B of this regulation;

  (2) Either meets the eligibility requirements for unemployment insurance benefits under Labor and Employment Article, Title 8, Annotated Code of Maryland, or may become unemployed and provides the Maryland Department of Labor with a copy of any notice received from the hospital which informed the individual that the individual may become unemployed;

  (3) Is not an independent third-party contractor; and

  (4) Is not an executive employee, physician or physician’s assistant.

B. Voluntary Closure, Merger, Downsizing, or Delicensure of Hospital.

  (1) A hospital that is:

    (a) Planning to close;

    (b) Planning to partially close;

    (c) Planning to merge with another institution voluntarily;

    (d) Is subject to acquisition; or

    (e) Has been fully or partially delicensed by the Secretary of Health, shall provide the Maryland Department of Labor and the Commission with a listing of all employees who will be laid off due to the circumstances described in this Regulation.

  (2) A hospital that is planning to downsize shall provide the Maryland Department of Labor with a listing of employees who will be laid off due to downsizing of the hospital.

  (3) The hospital shall submit the listing at least 90 days before the scheduled date of the voluntary closure, partial closure, acquisition, downsizing, or merger, or within 90 days of full or partial delicensure by the Secretary of Health. However, the period may be waived in whole or in part by the Maryland Department of Labor and the Commission for good cause.

  (4) The hospital shall include the following information in the listing for each affected employee:

    (a) Full name;

    (b) Social Security number;

    (c) Job title;

    (d) Description of job duties;

    (e) Length of service;

    (f) Rate of pay at time of layoff; and

    (g) Scheduled date of layoff.

#### Regulation .04 Services Provided.

*COMAR 09.33.03.04*

A. The Hospital Employees Retraining Program shall be administered in accordance with guidelines and policies, adopted by the Division.

B. Availability of Services.

  (1) The provision of services under this chapter is subject to the continued availability of monies in the Hospital Employees Retraining Fund.

  (2) The Maryland Department of Labor may decide how to allocate funds in the Hospital Employees Retraining Fund in order to serve hospital employees who are unemployed or may become unemployed as a result of the closure, downsizing, merger, or delicensure of a hospital.

#### Regulation .05 Filing of Complaints.

*COMAR 09.33.03.05*

A. A hospital employee may file a complaint regarding a determination of eligibility or the provision of services under the Hospital Employees Retraining Program.

B. Complaints may be filed in writing with the Assistant Secretary of the Division.

#### Regulation .06 Hospital Employees Retraining Fund.

*COMAR 09.33.03.06*

A. The Maryland Department of Labor shall establish a Hospital Employees Retraining Fund to pay for the costs of the Hospital Employees Retraining Program.

B. Fund Revenues.

  (1) If a hospital closes, merges, or is fully delicensed and workers are displaced under Health-General Article, §19-325, Annotated Code of Maryland, the Health Services Cost Review Commission shall assess a fee as required by Health-General Article, §19-326.1(b), Annotated Code of Maryland, to be paid within 30 days of the assessment.

  (2) Each hospital regulated by the Commission shall pay an annual fee as required by Health-General Article, §19-326.1(c)(1), Annotated Code of Maryland, by July 1 of each year.

  (3) If a hospital does not pay the fee by the date specified in this section, the Maryland Department of Labor shall assess interest on the amount due at the rate of 1-1/2 percent per month calculated on a daily basis.

  (4) If in any year the Fund is depleted, each hospital regulated by the Commission shall pay to the Department a direct remittance to address the needs resulting from a partial closure, downsizing, acquisition, or partial delicensure of a hospital, as required by Health-General Article, §19-326.1(d), Annotated Code of Maryland, within 30 days of receipt of the notice of assessment from the Commission.

C. The Hospital Employees Retraining Fund may be used only for expenses incurred for the administration and operation of the Hospital Employees Retraining Program including the costs of maintaining the Fund. Allowable costs may include but are not limited to:

  (1) Training, employment, and supportive services pursuant to the policies of the Division;

  (2) Payments to vendors to provide services necessary for the operation of the Program; and

  (3) Administrative costs for the management of the Program and the Fund, which may not exceed 15 percent of the total program costs.

D. At the end of each fiscal year ending on June 30, any unexpended funds remaining in the Fund shall be returned to the hospitals that contributed to the Fund on a pro rata basis as required by Labor and Employment Article, §11-201(h), Annotated Code of Maryland.